We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Verdant | LSE:VET | London | Ordinary Share | GB00B1HMZD32 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8408Q Virtual Internet PLC 1 February 2002 For Release at 07:00 hrs 1 February 2002 Enquiries: Tom Turcan, CEO Jonathan Wales, CFO Virtual Internet plc Tel: 020 7460 4060 John Bick, Holborn Tel: 020 7929 5599 john.bick@holbornpr.co.uk Virtual Internet plc Preliminary results for the year ended 31 October 2001 Virtual Internet plc, a leading provider of online brand management services, Internet hosting and domain naming, today announces its results for the year ended 31 October 2001. Financial Highlights Year ended Year ended 31 October 31 October 2001 2000 £000 £000 Turnover 9,332 6,259 Gross profit 6,459 4,383 Adjusted loss before taxation* (7,548) (4,343) Loss on ordinary activities before taxation (19,658) (7,998) Adjusted loss per share - basic and diluted 30.3p 18.9p Loss per share - basic and diluted 79.0p 34.8p Cash at bank 8,635 19,507 *Adjusted by excluding goodwill amortisation, goodwill impairment, and employee share incentive charges Commenting on last year's performance and prospects, Tom Turcan, CEO, said: "The Group has made encouraging progress during the period considering the difficulties experienced by the sector in which it operates as a whole. The Board considers that Net Searchers has developed into one of the leading forces in the corporate services sector for brand owners and is encouraged by its future prospects." CHAIRMAN'S STATEMENT The Board of Virtual Internet plc ("the Group") presents the results of the Group for the year ended 31 October 2001. The Group has made satisfactory progress over the past year in developing its strategy of becoming a global leader of Internet brand and trademark protection services. Progress within web hosting has been more difficult, and a restructuring of that part of the Group has been completed since the year end. FINANCIAL REVIEW Turnover for the year ended 31 October 2001 increased by 48 per cent to £9.3 million from £6.3 million for the year ended 31 October 2000. Gross profit was £6.5 million compared with £4.4 million for the year ended 31 October 2000. The loss before taxation, goodwill amortisation, exceptional items and the employee share incentive charges amounted to £7.2 million compared with £4.3 million for the year ended 31 October 2000. As highlighted in the results for the nine months ended 31 July 2001, the Board decided to write off goodwill of £10.1 million as part of its regular review of goodwill impairment. In addition, the Group incurred costs of £370,000 restructuring its hosting division as described later in this report. The effect of these two exceptional items has increased the reported loss before taxation to £19.7 million compared with £8.0 million in 2000. The operating losses reflect the cost of customer acquisition across the Group. With regard to Net Searchers, in particular, the returns from such activity are expected to be realised in the medium term. At 31 October 2001 the Group had cash at bank of £8.6 million compared with £19.5 million at 31 October 2000. OPERATING REVIEW Net Searchers Net Searchers, the Group's online intellectual property protection division, continued to make good progress throughout the period under review. Over the past year it has successfully attracted a number of new clients, including several major brand owners based in the US and continental Europe. The Board is pleased to note the market for corporate services to brand owners continued to expand over the period. It also saw an increased awareness of the specialist services provided by the division generated by new domain name developments such as the introduction of new top level domains, .info and .biz. Net Searchers' share of the .info "sunrise" registrations (for intellectual property owners) and .biz "landrush" registrations placed it well within the world's top ten registrars for these types of registration. In addition, Net Searchers successfully launched its new Name Console and this has made encouraging progress. Name Console allows users to register and manage a portfolio of domain names online and is targeted at law firms and large corporate users. During the period Linklaters & Alliance selected Net Searchers as its exclusive partner for its Blue Flag legal e-commerce portal. Work with other leading law firms continues to grow. Shortly after the year end, Net Searchers successfully renewed and extended its contract with BT under which Net Searchers provides domain name services to BTopenworld. Hosting services In contrast the market for the services provided by the Virtual Internet hosting division continued to be difficult throughout the year. Nevertheless the hosting division completed a comprehensive upgrade of its hosting infrastructure to ensure that it continues to offer a high specification product to its core market. As a result of the strategic review carried out by the Board during the year it was decided to close the sales and support offices in France and Italy and to dispose of the shares in WebControl GmbH, the German hosting operation bought during the year, back to its founders. This restructuring has been successfully implemented such that, combined with further cost reductions which took place in the UK, the hosting division is now more closely aligned to the business opportunity in the current economic climate. RegistryPro The launch of the new .pro Top Level Domain by RegistryPro, in which the Group has a 50 per cent stake, suffered from delays in the negotiation of the licence agreement with ICANN. However, the Board hopes to see a successful launch in the coming financial year. Additional capital of approximately £350,000 was invested in the joint venture vehicle in January 2002 in order to provide further funding to launch the business. OUTLOOK AND STRATEGY The Group has made encouraging progress during the period considering the difficulties experienced within the sector it operates. The restructuring of the hosting business during the year should enable it to continue to exploit its business opportunity. The Board considers that Net Searchers has developed into one of the leading global providers of corporate services to brand owners and is encouraged by its future prospects. RECOMMENDED OFFER Shareholders will have seen today, the announcement of the recommended cash offer for the Company on behalf of Register.com, Inc. The document containing details of the offer has been posted today and I encourage you to read its contents. William Slee Chairman 1 February 2002 GROUP PROFIT AND LOSS ACCOUNT FOR VIRTUAL INTERNET PLC FOR THE YEAR ENDED 31 OCTOBER 2001 2001 2000 Notes £000 £000 Turnover Continuing operations 9,332 6,259 Cost of sales 2,873 1,876 Gross profit 6,459 4,383 Selling and distribution costs 5,402 2,068 Administrative expenses: Before goodwill amortisation and exceptional items 8,715 7,187 Goodwill amortisation 1,638 3,294 Employee share incentives 2 344 361 Exceptional items: Restructuring costs 3 370 - Impairment of goodwill 3 10,128 - 21,195 10,842 Group operating loss Continuing operations (20,138) (8,527) Share of loss of joint venture (145) (70) Total operating loss (20,283) (8,597) Interest receivable and similar income 637 656 Interest payable and similar charges (12) (57) Loss on ordinary activities before taxation (19,658) (7,998) Tax on loss on ordinary activities - - Transfer to reserves (19,658) (7,998) Loss per share - basic and diluted 4 79.0p 34.8p Adjusted loss per share - basic and diluted 4 30.3p 18.9p GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR VIRTUAL INTERNET PLC FOR THE YEAR ENDED 31 OCTOBER 2001 2001 2000 £000 £000 Loss for the financial year attributable to members of the parent company (19,658) (7,998) Exchange difference on retranslation of net assets of subsidiary undertakings 1 6 Total recognised loss relating to the year (19,657) (7,992) GROUP BALANCE SHEET FOR VIRTUAL INTERNET PLC AT 31 OCTOBER 2001 2001 2000 £000 £000 FIXED ASSETS Intangible assets - 10,903 Tangible assets 3,089 1,708 Investments 127 - 3,216 12,611 CURRENT ASSETS Stocks 295 248 Debtors 3,497 2,523 Cash at bank and in hand 8,635 19,507 12,427 22,278 CREDITORS: amounts falling due within one year 3,019 3,195 NET CURRENT ASSETS 9,408 19,083 TOTAL ASSETS LESS CURRENT LIABILITIES 12,624 31,694 CREDITORS: amounts falling due after more than one year 128 180 PROVISIONS FOR LIABILITIES AND CHARGES 29 23 12,467 31,491 CAPITAL AND RESERVES Called up share capital 6,278 6,177 Share premium account 26,616 26,444 Other reserves 11,614 11,735 Profit and loss account (32,041) (12,865) Shareholders' funds: equity 12,467 31,491 GROUP STATEMENT OF CASH FLOWS FOR VIRTUAL INTERNET PLC FOR THE YEAR ENDED 31 OCTOBER 2001 2001 2000 £000 £000 NET CASH OUTFLOW FROM OPERATING ACTIVITIES (7,970) (5,223) RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest received 637 656 Interest paid (12) (57) 625 599 TAXATION Corporation tax paid - - CAPITAL EXPENDITURE Payments to acquire tangible fixed assets (2,344) (1,284) Payments to acquire investments in own shares (91) - (2,435) (1,284) ACQUISITIONS AND DISPOSALS Purchase of subsidiary undertaking (617) (285) Investment in joint venture (145) (70) Net cash acquired with subsidiary undertaking 15 - Net cash transferred with subsidiary undertaking on disposal (18) - (765) (355) NET CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID RESOURCES AND FINANCING (10,545) (6,263) MANAGEMENT OF LIQUID RESOURCES Decrease/(increase) in short term deposits 11,400 (18,421) FINANCING Issue of ordinary share capital 32 27,014 Issue costs - (2,098) Movement in long-term borrowings (27) 14 Capital element of finance lease rental payments (25) (19) Repayment of loan notes - (279) (20) 24,632 INCREASE/(DECREASE) IN CASH 835 (52) GROUP STATEMENT OF CASH FLOWS FOR VIRTUAL INTERNET PLC FOR THE YEAR ENDED 31 OCTOBER 2001 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2001 2000 £000 £000 Increase/(decrease) in cash 835 (52) Cash outflow from movement in loans 52 284 Cash (inflow)/outflow from (decrease)/increase in liquid resources (11,400) 18,421 Change in net funds resulting from cash flows (10,513) 18,653 Loans acquired with subsidiaries - - Other - - Movement in net funds (10,513) 18,653 Net funds at beginning of year 18,972 319 Net funds at end of year 8,459 18,972 NOTES 1. ACCOUNTING POLICIES Basis of preparation The financial information for all periods has been prepared on the basis of the accounting policies set out in the Group's statutory accounts for the year ended 31 October 2001. Expenses are accrued in accordance with the same principles used in the preparation of the accounts. 2. EMPLOYEE SHARE INCENTIVES Year ended Year ended 31 October 31 October 2001 2000 £000 £000 Recognised in arriving at operating loss: Long Term Incentive Plan ("LTIP"): -UITF 17 charge 360 149 -Employer's National Insurance (16) 23 Employee Benefit Trust ("EBT") -UITF 17 (credit)/charge - (30) -Employer's National Insurance - (30) -Benefit awarded in cash - 249 344 361 This cost recognises the charge in the year in connection with the EBT and LTIP in accordance with Urgent Issues Task Force Statement 17 ("UITF 17") and an estimation of the related employer's national insurance liability on potential share benefits under the scheme. During the previous financial year, the trustees of the EBT determined that the potential benefits which had been made available to employees of the Group since the EBT was set up should be awarded and that no more awards should be made under the scheme as the Group had set up new employee share incentive schemes. On the setting up of the EBT it was envisaged that the award to beneficiaries would be made only in shares. However, beneficiaries of the trust were given the choice of whether to receive their award in shares or cash. As a result of this change, the UITF 17 charge associated with awards made in cash was reversed and replaced with a charge which reflected the cash paid to the beneficiaries. The charge in connection with UITF 17 is recognised as a movement in other reserves within shareholders' funds. The estimated employer's national insurance liability is recognised as a provision. This provision is calculated based on the share price at the end of the year. 3. EXCEPTIONAL ITEMS Year ended Year ended 31 October 31 October 2001 2000 £000 £000 Impairment of goodwill 10,128 - Restructuring costs 370 - 10,498 - In July 2001, in light of the continuing uncertainty in the economic climate as a whole and the widespread fall in valuations of companies operating in the internet services sector, the directors performed an impairment review of goodwill and fixed assets. As a result, the remaining goodwill of £10,128,000 was written off. Restructuring costs represent the cost of reorganising the hosting business in the UK, and the closure of sales/support offices in France and Italy. 4. LOSS PER ORDINARY SHARE The calculation of basic loss per ordinary share is based on the loss after tax of £19,658,000 (2000 - £7,998,000) and 24,887,580 (2000 - 22,978,598) shares being the effective weighted average number of ordinary shares in issue during the year. The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purposes of calculating the diluted loss per share are identical to those used for basic loss per ordinary share. This is because the exercise of share options and other share benefits would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of FRS 14. Year ended Year ended 31 October 31 October 2001 2000 No. No. The calculation of basic loss per ordinary share is based on the effective weighted average number of shares in issue during the period 24,887,580 22,978,598 The adjusted loss per share is based on the loss after tax before goodwill amortisation, goodwill impairment and the employee share incentive charges: Year ended Year ended 31 October 2001 31 October 2000 £000 £000 Loss after tax as reported 19,658 7,998 Less: Goodwill amortisation and impairment charge (11,766) (3,294) Charge in connection with employee share incentives (344) (361) 7,548 4,343 The effective weighted average number of ordinary shares used in the adjusted loss per share calculation is the same as used in calculating the basic loss per share. 5. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Year ended Year ended 31 October 31 October 2001 2001 £000 £000 Operating loss (including loss in joint venture) (20,283) (8,597) Depreciation 963 346 Amortisation of goodwill 11,766 3,294 Increase in stocks (47) (227) Increase in debtors (958) (1,771) Increase in creditors 94 1,595 Increase/(decrease) in other provisions 6 (52) Charge in connection with UITF 17 (see note 2) 344 119 Share of loss of associate 145 70 Net cash outflow from operating activities (7,970) (5,223) 6. DIVIDEND No dividend was paid in the year and the directors do not propose to recommend the payment of a final dividend. 7. PUBLICATION OF NON-STATUTORY ACCOUNTS The financial information contained in this statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the full preceding period is based on the statutory accounts for the financial year ended 31 October 2000. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. The financial information for the current year is based on the statutory accounts for the financial year ended 31 October 2001, upon which the auditors have issued an unqualified opinion. This information is provided by RNS The company news service from the London Stock Exchange
1 Year Verdant Chart |
1 Month Verdant Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions